We estimate the causal effects of childcare availability on the maternal employment rate using prefecture panel data constructed from the Japanese quinquennial census 1990-2010. We find that childcare availability did not increase maternal employment due to the crowding-out effects. Namely, families substituted accredited childcare for informal care by grandparents. We also find evidence that more and more families do not live with grandparents who used to take care of grandchildren, as the availability of accredited childcare increases.

Institute of Economic Research, Hitotsubashi UniversityJSPS Postdoctoral Fellow at Institute of Social Science, the University of TokyoInstitute of Economic Research, Hitotsubashi UniversityDepartment of Economics, McMaster University一橋大学経済研究所